Brief lesson in Unemployment: You work. Your company pays unemployment taxes. They terminate you. You file and get benefits. Your company's tax rate increases based on that claim for unemployment. This is a rough sketch.
Your employer paid $1 billion dollars in wages. (In Texas, there is only one employer that has paid $1billion in wages.) That's a lot of money. Right? So, if their tax rate is 6% that is $60 million dollars. (I checked my math with 2 calculators. Yes. $60 million dollars.) This goes into the trust fund. If you file for unemployment in Texas you'll get $415 a week for 26 weeks. Honestly, I'm still stuck on that amount of money. I mean just in taxes, that's a lot of money. SO it's reasonable to think that a company might try to get around this.
Situation: A company has a contract with the U.S. Government to employee contractors in Iraq. They pay these contractors $120k per year. They employee 1,000 contractors. That is $120 million in wages. At the same rate, 6%, they would have to pay $7.2 million in taxes to support the trust fund.
I found out today that a company who employs contractors in Iraq has set up an office in Dubai. A subsidiary employs the contractors. When they return to the US and try to collect their unemployment they are told because their employer is in Dubai, they cannot collect unemployment. "But I signed my contract in Houston. I have a W2."
The original employer, one of the largest in the world, is not liable for the taxes. This is a loophole that saves the company millions of dollars. The office in Dubai is slightly larger than a walk-in closet. There is a file cabinet, a computer and 2 employees to manage the logistics of hiring thousands of people.
This CHAPS me.
Okay I'm done. On a cuter note, I've attached a picture of further spoiling of my dog by my English friend.
Your employer paid $1 billion dollars in wages. (In Texas, there is only one employer that has paid $1billion in wages.) That's a lot of money. Right? So, if their tax rate is 6% that is $60 million dollars. (I checked my math with 2 calculators. Yes. $60 million dollars.) This goes into the trust fund. If you file for unemployment in Texas you'll get $415 a week for 26 weeks. Honestly, I'm still stuck on that amount of money. I mean just in taxes, that's a lot of money. SO it's reasonable to think that a company might try to get around this.
Situation: A company has a contract with the U.S. Government to employee contractors in Iraq. They pay these contractors $120k per year. They employee 1,000 contractors. That is $120 million in wages. At the same rate, 6%, they would have to pay $7.2 million in taxes to support the trust fund.
I found out today that a company who employs contractors in Iraq has set up an office in Dubai. A subsidiary employs the contractors. When they return to the US and try to collect their unemployment they are told because their employer is in Dubai, they cannot collect unemployment. "But I signed my contract in Houston. I have a W2."
The original employer, one of the largest in the world, is not liable for the taxes. This is a loophole that saves the company millions of dollars. The office in Dubai is slightly larger than a walk-in closet. There is a file cabinet, a computer and 2 employees to manage the logistics of hiring thousands of people.
This CHAPS me.
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